DATE: December 14, 2021
TO: Board of Supervisors
SUBMITTED BY: Hollis Magill, Director of Human Resources
SUBJECT: Revisions to the County's Funding Policy for Major Self-Insurance Programs
RECOMMENDED ACTION(S):
TITLE
Approve revisions to the County's Self-Insurance Funding Policy for the General Liability, Workers' Compensation, and Medical Malpractice Programs as referenced in Exhibit A and delegate the authority to make future Funding Policy revisions to the County Administrative Officer in consultation with the Auditor-Controller/Treasurer-Tax Collector's Office.
REPORT
The recommended action would revise the County's Funding Policy by establishing standard practices and procedures for funding the County's three (3) largest Self-Insurance Programs - General Liability, Workers' Compensation, and Medical Malpractice for inclusion in a Management Directive. Revisions would include a more conservative pre-determined confidence level at which to fund the programs as recommended by the actuary. It would also establish procedures and a timeline for addressing program surpluses and/or deficits.
The recommended action would also delegate the authority to approve future revisions to the Funding Policy to the County Administrative Office in consultation with the Auditor-Controller/Treasurer-Tax Collector's Office, rather than presenting an Agenda Item to your Board for approval each time a revision is made.
If approved, the recommended action would be effective beginning with the 2022 calendar year in preparation of FY 2022-23 self-insurance rates.
ALTERNATIVE ACTION(S):
Your Board could choose to not approve the recommended action and the County's existing Funding Policy would remain unchanged. All future recommended revisions to the Funding Policy would have to individually be brought back to your Board for consideration and approval.
FISCAL IMPACT:
There is no increase in Net County Cost associated with the recommended action for FY 2021-22. The Co...
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